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Bank of Ghana Report Commercial sector records highest bank defaults

According to the report, the private sector contributed 97.4 percent of banks' Non- Performing Loans(NPL) by September 2015. This represented a 4.3 percentage increase on September 2014's 93.1 percent.

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Commercial Sector in Ghana play

Commercial Sector in Ghana

The Bank of Ghana's Financial Stability Report 2015, has revealled the sectors that have defaulted most on loans acquired from banks in the country.

According to the report, the private sector contributed 97.4 percent of banks' Non- Performing Loans(NPL) by September 2015. This represented a 4.3 percentage increase on September 2014's 93.1 percent.

The proportion of banks’ Non- Performing Loans attributable to the public sector improved from 6.9 percent in September 2014 to 2.6 percent in September 2015.

Even though private enterprises received only 71 percent of the private sector credit, they accounted for 88.4 percent of NPLs in the sector as at September 2015 compared with 70.5 percent of credit received and 83.8 percent of NPLs respectively in the same period in 12 2014.

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The highly disproportionate level of NPLs associated with the private enterprises was driven mainly by indigenous enterprises, which received 60.9 percent of credit to private enterprises but accounted for 79.1 percent of NPLs as at September 2015.

 However, while foreign enterprises’ share of private sector credit declined, their contribution to private sector NPLs increased marginally over the period under review. Households’ share of private sector credit and contribution to NPLs increased marginally over the review period

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